EFFECT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF NIGERIA OIL AND GAS FIRMS (A STUDY OF TOTAL NIGERIA PLC)

This study set out to ascertain the effect of corporate governance on financial performance of Nigeria Oil and Gas Firms. Specifically, the study determined the effect of Board Size, Board Diligence and Board Diversity on return on asset of Nigeria Oil and Gas Firms with evidence from Total Nigeria Plc. An ex –post facto research design approach was adopted for the study. The population of this study comprise of all the Oil and Gas firms in Nigeria. Using time series data for the period of six (6) years (2017 to 2022) and a purposive sampling method, Total Nigeria Plc. was chosen as the sample size. Secondary data were obtained which includes the annual report of the companies from 2017 to 2022 financial year obtained from the company and the company’s website. The data collected were presented and analyzed using tables, descriptive and inferential statistics. Three hypotheses were formulated and tested in the course of this study. Regression analysis was used to test for statistical significance of the impact of corporate governance on financial performance of Nigeria Oil and Gas Firms. The results showed that Board Size has significant effect on return on asset of Total Nigeria Plc. The findings further revealed that Board Diligence does not have significant impact on return on asset of Total Nigeria Plc. Finally, the result established also that Board Diversity does not have significant impact on return on asset of Total Nigeria Plc. Consequent upon the findings, this study recommends among others; that Membership to the board should be increased to a maximum number since only larger number on board can agued out decision that will be of benefit to the firm. Again, Corporate governance should ensure better decision-making policies, maximize profits and reduce the risk of human interference activities such as fraud, robbery, super-star culture or ̳the only star’ who commits no mistakes.